www. greenpeaceindia€¦ · Key players The entry of new players into the telecom industry has...

www. greenpeaceindia.org

Reports produced by Greenpeace India Society, May 2011

Authors Sanjiv Gopal and Mrinmoy Chattaraj

Edited by Grace Boyle

Photographer Sharbendu De

Designed by Greenpeace India

Images Copyright Greenpeace India Society

For more Information, please contact:

Abhishek Pratap

Senior Campaigner, Greenpeace India

E: [email protected]

M: +91 98456 10749

CONTENTS

1. Executive Summary ....................................................................................................................................... 01

2. Overview of the Indian telecommunication sector ........................................................................................... 05

3. Overview of energy management and challenges ........................................................................................... 09

4. Overview of carbon emissions ........................................................................................................................ 15

5. Economic case for the shift to renewables ..................................................................................................... 29

6. Towards sustainable communication ................................................................................................................ 39

7. Annexures ........................................................................................................................................................ 41

Image on the cover page: Mobile tower using indoor BTS along with

diesel generator for electricity generation.

Executive Summary

• to a diesel generator (DG) based tower over ten years. Over three years, the reduction will be over 120 per cent. Telecom operators and tower companies currently spend around lNR 126 billion annually on running diesel generators to power network operations.

• The telecom sector has witnessed staggering growth with gross revenues in excess of USD 35.6 billion and FDIs in the range of USD 2.35 billion in 2008-2009. The potential of rural markets is estimated to be a further USD 10 billion. Yet despite this growth and scope, the sector is yet to disclose its carbon emissions and commit to reduction of emissions in a public and transparent manner on a consistent basis. Major telecom companies within the sector are particularly guilty of this. Similarly, telecom operators have yet to shift the sourcing of their power requirements to renewable sources at scales of significance:lessthanthreepercent of existing network towers currently run on renewable sources.

• The telecom sector in India emitted over 5.6m tonnes of CO2 in 2008 as a result of diesel2 use.Emissions have since risen and arelikelytoincreasesignificantlywith the sector’s predicted exponential growth over the

sometimes of extended duration. While the current model of diesel-powered networks offers the sector short-termprofits,suchamodelofoperation is likely to limit growth and profitgenerationprospectsofthesector in the long term.

The growing appetite for energy, the implications of climate change, our continuing damage to the environment, plus the scarcity and increasing prices of fossil fuels, create the appropriate conditions to develop the sector’s use of renewable energy. For telecom operators,thebenefitsofamoreproactive approach to carbon and energy-oriented management will be significant.Themarketisextremelycompetitive and open for movers. However, telecom companies are yet to integrate low energy and low carbon considerations across their operations and portfolio to any serious level.

Some of the key aspects this report include:

• The cost and energy savings that the sector and the companies within itcouldbenefitfrom,bymakingashift towards renewable sources to power their network operations.

• A shift in power sourcing to renewable technologies, such as solar photovoltaic, will result in 300 per cent reduction in total costs (CAPEX + OPEX) for telecom operators, in comparison

India is now the second largest of the global telecom markets and is projected to overtake China. The telecom industry has attracted eight per cent of the cumulative foreign direct investment (FDI) over the last two years, with a cumulative flowofFDIworthUSD10.26billion to the sector between April 2000 and January 2011. Indian telecommunication companies are now set to make a major impression globally. India’s telecom equipment manufacturing sector is also emerging as one of the largest in the world.

However, this growth has been, and continues to be, at the cost of the climate. In India, the sector has been continually reliant on diesel, and as a result is responsible for over 6 m tonnes of CO2 emissions from diesel generated power annually.

Energy is a dominant cost component for telecom companies. Currently, the sector requires fourteen billion units of electricity annually to power its network infrastructure, in order to provide uninterrupted service to its consumers . This is projected to grow to around twenty six billion units of electricity by 2012.

As telecom networks focus on sustaining growth and expansion into new markets and areas, they are increasingly troubled by the inadequacies of the power grids and risks of unexpected outages,

• next few years. Considering the absence of proactive movement from within the sector, it is imperative for the government to expedite the process by establishing stringent regulatory frameworks that hold the telecom industry accountable to their carbon emissions.

• Simultaneously, the government subsidy on diesel has been aggressively exploited by the telecom sector, given the absence of dual or differential pricing of the fuel. This has also encouraged inefficientconsumptionofdieselby the telecom sector. The sector annually consumes around 3 billion litres of diesel to power its network towers. This results in an annual loss of around INR 26 billion to the state exchequer.

The Information and Communication technology (ICT) sector can lead the drive to a sustainable and green economy and play a transformative role in how we produce, deliver and use energy. ICT based solutions can contribute towards the reduction of global GHG emissions by 15% by 2020and in the process also deliver energy savings to the tune of over €600 billion to global business.

Wireless telecom enables remote monitoring through machine-to- machine (M2M) ‘smart services’ using cellular connections. Of the wide range

of possible opportunities for wireless telecom to reduce carbon emissions and energy costs, some of the key areas include virtual alternatives (offices,videoconferencingetc),smartgrids and energy network monitoring, smartlogisticslikeurbantrafficmanagement, e-commerce and mobile banking, tele-medicine and education.

With its immense contribution to India’s growth over the last two decades, the telecommunication sector is well placed to transit to a business model that relies on energy efficiencymeasures,incombinationwith harnessing clean energy sources for its operations.

Greenpeace is calling on the telecom industry to focus on managing its energy and carbon by substantially shifting its power generation for network operations to renewable sources, and to proactively advocate for economy-wide policies that combat climate change and increase the use of renewable energy.

2The overall emission of telecom network towers (diesel consumption and grid connected electricity in combination) was around 13.6 m tons.

01 02

Image: Roof top mobile tower in urban area, commonly found and powered by diesel generator.

Overview of Indian Telecommunication sector

Broadly, the sector can be divided into four sub-sets: 1.Network infrastructure companies, such as Alcatel-Lucent, Vihaan Networks Limited (VNL), Nokia – Seimens, Cisco, Ericsson and Huawei Technologies.2.Telecom service providers, such as Bharti-Airtel, Vodafone, Reliance Communication and Idea Cellular.3.Equipment manufacturers, such as Nokia, Motorola and Samsung.4.Infrastructure providers such as Indus Towers, Bharti Infratel, Global Telecom Limited (GTL), and VNL.

Telecom service providers are the major force in the sector, covering utilities such as telephones, radio, television and internet.

2Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India www.trai.gov.in3Refer to http://www.dot.gov.in/osp/Brochure/Brochure.htm 4Frost & Sulivan and http://economictimes.indiatimes.com/news/news-by-industry/telecom/indian-telecom-sector-to-grow-to-100-bn-by-2015-bcg/articleshow/7269853.cms5Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India www.trai.gov.in

In the last two decades, the Indian telecom sector, and mobile telephony in particular, has caught the imagination of the country. It has revolutionised the way we communicate and share information, and through its staggering growth has helpedmillionsstayconnected.Thesectorhaswitnessedconsistentgrowthoverthelastfiveyearsduetorolloutofnewcircles by operators, successful auction of the third-generation (3G) and broadband wireless access (BWA) spectrums, network rollout in semi-rural areas and increased focus on the value added services market2.

2010

2009

2007

2006

2005

2004

2003

Figure 1.1 Revenue of the Mobile Sector,

Revenue (USD Billions)

Source: Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India www.trai.gov.in

India is now the second largest telecom market globally and is projected to overtake China, with gross revenues exceeding USD 35.6 billion and a compound annual growth rate (CAGR)3offorty-fivepercent.By2012,fixedline revenues are expected to touch USD 12.2 billion, while mobile revenues are expected to reach USD 39.8 billion4. To put this growth in perspective, the country’s cellularbasewitnessedclosetofiftypercentgrowthin2008, with an average 9.5 million new customers every month. In India, there are currently eight to ten million new mobile subscriptions added each month.

Source: Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India www.trai.gov.in

Figure 1.2 Telecom Subscriber base (millions)

Subscriber base (millions) - Quarter endings

Sept'09 Dec'10 March'10 June'10 Sept'10

509.03 542.16 621.28 671.28 723.28

This would translate into 800 million mobile subscribers, accountingforatele-densityofaroundfifty-onepercentby 2012. The telecom sector is likely to see tremendous growth in India’s rural and semi-urban areas, in particular5.

Chapter 01

In just three months (July 2010 to September 2010) the number of telecom subscribers in India grew from 671.69 million to 723.28 million: a growth of 7.68 per cent6. Similarly, the number of telephone subscribers grew from 787.28 million in December 2010 to 806.13 million at the end of January 2011: an overall tele-density of 67.67 per cent7.

Foreign direct investments

The telecom market has been attracting huge amounts of investment, which is likely to accelerate with the entry of new players and launch of new services. The sector has attracted eight per cent of the cumulative foreign direct investment (FDI) over the last two years with a cumulativeflowofFDIworthUSD10.26billioninthesector in India between April 2000 and January 20118.

Simultaneously, Indian telecommunication companies are now set to have a major global impact. India’s telecom equipment manufacturing sector is also emerging as one of the largest in the world. Revenues are estimated to grow at a CAGR of 26.6 per cent from 2006 to 2011, touching USD 13.6 billion9.

Figure 1.3Foreign direct investments in the Indian

telecom sector, FDI - USD millions

Key players

The entry of new players into the telecom industry has made competition intense, in particular over the last four years. The dominant players in the market currently include Bharti-Airtel (20.09 per cent of the Indian market), Reliance Communications (16.70 per cent), Vodafone (16.54 per cent), BSNL (11.41 per cent), Tata Tele Services (11.08 per cent), Idea (10.97 per cent ), and Aircel (6.76 per cent10) (Refer to Annexure 3). As canbeseenfromthesefigures,thecrowdedmarketplace has led to a fragmented industry, and the pressure on margins is now causing some of the key operators to spread risk by entering new rural and semi-urban areas.

03-04

04-05

05-06

06-07

07-08

08-09

116

126

680

521

1257.65

2345.68

Source: Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India

6Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India www.trai.gov.in7Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India www.trai.gov.in8Department of Industrial Policy and Promotion (DIPP) and refer to http://www.dot.gov.in/osp/Brochure/Brochure.htm9Market Trends – Global Telecommunications Market, Gartner, July 201010Refer to Annexure 3

05 06

Image: Grid connected mobile tower, two-third of mobile towers in India are grid connected. Almost all mobile towers even those grid- connected, use diesel generators for back-up power due to inconsistent power availability.

236 376 535 647 797

2008 2009 2010 2011 2012 Actual Actual Actual Projected Projected

Overview of energy management and challenges

Telecom service providers are now eyeing the largely untapped rural mobile market. Industry estimates indicate the size of this rural market to be INR 400 billion (USD 9 billion)11. To support this growth, over 300,000 new base transceiver station (BTS) sites will be required torolloutinthreetofiveyears,therebydoublingtheexisting numbers12.

Currently, the sector requires fourteen billion units of electricity annually to power its network infrastructure, in order to provide uninterrupted service to its consumers13. This is projected to grow to over twenty six billion units of electricity by 2012.

Energy is a dominant cost component for telecom companies. Maintaining the growth of the sector requires increased access to energy, as does the expansion of the network required to support value-added services, as does the key business of further penetration of tele-density in the rural segment.

corresponding to a shortage of 12.7% . As with other industrial, commercial, and residential consumers, this demand-supplygapposesasignificantchallengeforthecontinued operation of telecom towers, especially those located in rural and semi-urban areas.

Of around 400,000 mobile towers in India, a majority of them are located in rural and semi-urban areas where either grid-connected electricity is not available or the electricity supply is irregular14. Further, close to 25% of these are located in areas with no grid connectivity. The cost of establishing a network tower is approximately INR 3 million, assuming the infrastructure to derive power from the grid exists. In its absence, the service or infrastructure provider is required to bear the costs15.

Ascanbeseenfromfigure2.2electricityavailableovera day ranges from about 7 to 21 hours across the major telecom circles in India. As telecom networks expand into these markets they are increasingly troubled by the inadequacies of the power grids and risks of unexpected outages, sometimes of extended duration.

Additionally, back-up power sources could be required to handle the entire load of BTS, including air conditioning and inevitable power losses. Typically, BTS sites are backed by a 15-25 kVA or 40 kVA diesel generators.Mostsitesarelocatedingriddeficitareasthat need diesel generators to run, for up to twenty hours per day. According to industry estimates, one third of the operational expense of BTS in India is the fuel cost to run the power back-up equipment.

As a result, mobile towers in these areas heavily rely on Diesel Generator (DG) sets to power their network operations. Energy expenses constitute around one third of total OPEX costs for telecom towers. (Pleaserefertofig2.3)

The gap between the demand of customers connected to the grid and the available electricity supply reported by the Central Electricity Authority for 2009–2010 was almost 84 TWh, which is 10% of the total requirement. Thepeakdemanddeficitwasmorethan15GW,

Chapter 02

Figure 2.1Existing and projected rollout of Base Transceiver

Stations, BTS roll out in thousands

Source : B & K 2009, IDFC 2009, Industry discussions, KPMG analysis

11CMAI – Role of Renewable Energy in Telecom12CMAI – Role of Renewable Energy in Telecom13http://www.gtllimited.com/pdf\corporate_forum\GTL-Sharat_Chandra-Telecom_Energy_Management_v2.0.pdf14http://www.communicationstoday.co.in/oct2007/telecom-towers-a-combination-of-passive-and-active-infrastructuresharing-seems-to-be-the-way- to-go-2637-41.htm 15Telecom Regulatory Authority of India – Green Telecom Paper

Figure 2.2Grid connected electricity available across major telecom circles over a day

Source : Central Electricity Authority, Ministry of Power, Government of India

Figure 2.3Existing and projected rollout of Base Transceiver Stations, BTS roll out in thousands

Source : WCS Opinions - The Green Telecom Story

09 10

Giventhepowerdeficit,almostsixtypercentofthepower requirement of telecom towers is met by diesel-generated electricity16. Each tower currently consumes an average of 4,000 litres of diesel every year, implying an annual consumption of about 1.8 billion litres of diesel every year17. The telecom operator spends INR 3 billion (USD 67.42 million) every month running diesel generators in remote locations where grid base power is limited18. This translates to an operational energy expense of around INR 65 billion annually to operate network towers, especially in off-grid locations. Due to this high dependence on diesel, the operational costs of the sites increase drastically to around 200 per cent more than those where grid power availability is regular19.

The key challenges facing the sector include:

• The lack of availability of grid power and high energy-related OPEX, due to running diesel generators for long hours and the higher costs of diesel fuel. The quality of power in rural areas is very poor, usually limited to a few hours of electricity

• provision a day or none at all. However, market competitionrequiresoperatorstorunBTSefficiently,so forcing local power generation based on diesel. Thisdependencyondieselsignificantlyincreasesin rural areas as grid availability decreases. In rural areas, diesel generator sets often operate between twelve to sixteen hours every day. The inaccessibility of many of these areas further raises OPEX costs through the transportation of diesel, and pilferage accountsforfifteentotwentypercent20 of energy cost per tower.

• Difficultiesinmeasuringactualpowerconsumption

• IndoorBTSrequirescoolingthatconsumesfiftypercent of power to the telecom tower

• Most direct and indirect sources of power emit carbon dioxide

16Telecom Regulatory Authority of India – Green Telecom Paper17‘GIL Annual Report 2010’, GIL Company Website, March 201018MAZAR & CMAI - “Role of Renewable Energy in Telecom”19TelecomRegulatoryAuthorityofIndia-finalpaperonGreenTelecominputs,COAI,201120Industry estimates suggest that a leading operator company loses around INR 5 billion per annum as a result of pilferage of diesel.

11 12

Image: Roof top mobile tower in urban area, commonly found and powered by diesel generator.

Image: A diesel generator commonly used as back up power for mobile towers across the country.

Overview of carbon emissions

In 2008, the Climate Group and the Global e-Sustainability Initiative (GeSI) issued SMART 2020: enabling the low carbon economy in the information age21.Thestudyhighlightedthesignificantandrapidlygrowingfootprintoftheinformationand communication technology (ICT) industry. With more and more subscribers being added to the telecommunication networks, energy consumption and the contribution of the telecom sector to global greenhouse gas emissions is increasing.

The ICT industry alone accounts for two percent, or 860 million tonnes, of the world’s greenhouse gas emissions. Within that, the telecommunication network and devices contribute about 0.7 per cent of global emissions22. The forecasted electricity consumption of the telecom sector is estimated to be 951.72 billion kWh, and that of the total ICT sector at 1,963.74 billion kWh, by 202023.

The telecom sector in India is expected to continue on its growth trajectory. This growth, however, has been and continues to be at the cost of the climate, powered byanunsustainableandinefficientmodelofenergygeneration and use. With such growth also comes an increasing demand for energy, at a time when climate change and reducing emissions from energy use is of paramount concern.

Manyruralandsemi-ruralareashavedeficientpowersupply. Estimates indicate that about forty per cent of the power requirement of these towers is met by grid electricity and sixty per cent by diesel generators.

Chapter 03

Figure 3.1How big is the carbon footprint of the Information and Communication Technology sector

Figure 3.2Direct emissions of the mobile phone industry

Source : Make IT Green – Cloud Computing and its contribution to climate change; Greenpeace International

Source : GSMA, Green Manifesto for Mobile Industry

21Climate Group and the Global e-Sustainability Initiative (GeSI)(2008). SMART 2020: enabling the low carbon economy in the information age. Available athttp://www.smart2020.org/_assets/files/03_Smart2020Report_lo_res.pdf

22Climate Group and the Global e-Sustainability Initiative (GeSI)(2008). SMART 2020: enabling the low carbon economy in the information age. Available athttp://www.smart2020.org/_assets/files/03_Smart2020Report_lo_res.pdf23 Greenpeace International - Make IT Green – cloud computing and its contribution to climate change

Emissions 2007 (MtCO2e)

Percentage 2007 Emissions 2020 (MtCO2e)

Percentage 2020

World 830 100% 1430 100%

Server farms / Data

centres

116 14% 257 18%

Telecoms infrastructure and devices

307 37% 358 25%

PCs and peripherals

407 49% 815 57%

2009 2010 2011 2012 Actual Actual Forecast Forecast

Figure 3.3 Emissions of base transceiver stations

Note: Emissions calculated on the basis of BTS rollout as per Telecom Regulatory Authority of India (TRAI) projections.

22.83

32.48

39.28

48.39

15 16

Policy initiatives

As part of the National Action Plan on Climate Change (NAPCC), the solar photovoltaic programme of the Jawaharlal Nehru National Solar Mission (JNNSM) provides support for the installation of stand-alone solar photovoltaic (SPV) power plants with capacities ranging from 1-10 kWp installed capacity without distribution networks, and above 10 kWp installed capacity with distribution networks. In addition, rooftop solar photovoltaic systems from 10 kWp to 100 kWp installedgeneratingcapacityisgivencentralfinancialassistance. Funds available are applicable for 13.5 mWp for decentralised SPV and 4.25 mWp for rooftop SPV systems over the period from 2009 to 2012.

AspartofthefirstphaseoftheJNNSM,developerscould be asked by the NTPC Vidyut Vyapar Nigam Ltd (NVVN) to share costs on tariffs determined by the Central Electricity Regulatory Commission, to distribute the risks between NVVN and the developer24.The project developer that offers the maximum sharing of costs is selected.

Simultaneously, the government has introduced a range of subsidies for the developers harnessing power through renewable sources across multiple technologies. Inadditiontointroducingdefinedpoliciesforwindgeneration at the central and state levels (in particular Maharashtra, Tamil Nadu, Madhya Pradesh, Karnataka and Gujarat), other incentives introduced include: 100 per cent accelerated depreciation for tax purposes inthefirstyearofinstallationofprojectsandsystemsifthe project is commissioned before 30th September of thefinancialyear,or40%iftheprojectiscommissionedbefore31Marchofthefinancialyear.Companieshavethe option to choose AD and GBI; low import tariffs for capital equipment, materials and components; and competitive prices under alternate power purchase policies by state governments, for power generated through renewable sources and fed to the grid.

However, these incentives are yet to align and match the expectations of the telecom business. Industry sources clearlyindicatetheneedformodifications,includingachange from the basis of selection being the highest discounts offered on prices, as this leads to undercutting and makes projects unviable.

Aspartofdeliveryofthefirstphaseofthesolarmission,the Ministry of New and Renewable Energy has made provisions to support telecom operators and tower companies in their shift to renewable sources to power network towers. However, this support is restricted to aninsignificantallocationofjust100networktowerspercompany. In a market space with currently around

400,000 operational towers and another 150,000 anticipated in the near future, this provision does not offerthecompaniesanysignificantsupport.

In the case of SPV technology, under the above scheme, all deployment should also use modules and cells manufacturedinIndia.Moreflexibilityisrequiredforthescheme to be relevant and drive change for the telecom sector,moreflexibilityisrequired,asthecurrentsupplyof modules and cells manufactured in India will not be able to cater to all the needs. The scheme should allow for modules and cells to be procured from other sources and countries with proven technologies. Indirect subsidies to the telecom sector – loss to the exchequer

Oilpricesareincreasing.Whilefluctuationsmayresultin a momentary drop in prices, in the mid-term and longtermthepriceofthisfiniteissettogoonlyinonedirection – up. At around $90 per barrel currently, crude oil is expected to sell once again in the triple digits. As a distillate of oil, the price of diesel will also rise.

However, the subsidy on diesel has been aggressively exploited by the telecom sector, given the absence of dual or differential pricing of the fuel. This has also encouragedinefficientconsumptionwithininthetelecom

The consumption of diesel by the telecom sector, at current rates, results in an annual loss of around INR 26 billion to the state. Considering year-on-year projections, on the basis of existing models of power generation for networktowers,thisislikelytoincreasesignificantlyinthe future.

If the current subsidy on diesel used by the telecom sector were removed, its annual expenditure to power its network towers would increase to INR 150 billion. Interestingly, this would be equivalent to the CAPEX required over the next 10 years at current electricity demand to solarise around 500,000 network towers.

There is no longer any option but to act. The government clearlymustremovetheexistingfiscaldistortionin price and policy as far as the telecom sector is concerned. Without a correction on its use of diesel, thegovernment’sfiscalmanagementprogrammewillbeadversely affected.

The options before the government in this regard should be to mandate a rapid phase-out of diesel use in network towers by 2015, and consider introducing a taxation scheme to fast-track such a phase-out.

Simultaneously, the government should consider provisions to provide incentives to ensure that atleast fiftypercentofurbanandhundredpercentofnetworktowers in rural and semi-urban areas use renewable sources of energy for their operations.

Regulatory frameworks

For telecom operators, the business case for sustainability is a robust one. In addition to the lowering of costs and improved brand reputation, operators can look forward to a greater share of the growing market of businesses and consumers that demand higher environmental standards of their suppliers.

At the moment, there is no established regulatory frameworkrelatingtocarbonemissionsandefficiencystandards for telecom operators in India to comply with. The Telecom Regulatory Authority of India (TRAI) has recently released its recommendations for an approach towards green telecommunications. This publication attempts to address carbon emissions in three areas: network operations, manufacturing of telecom equipment and disposal of telecom waste25.

sector. According to the Ministry of New and Renewable Energy, the consumption of diesel by the telecom industrywas2billionlitresfrom2007to2008.Thisfigureincreased to over 3 billion litres per annum by 2010.

Figure 3.4 Price per barrel of oil

Source: Greenpeace - Energy [R]evolution www.energyblueprint.info; Reliance Industries Future of Energy Options for India in an interdependent world, http://www.worldenergy.org/documents/p001145.pdf

Year Price (USD/barrel)

Projected imports to

India (barrel)

Projected Costs on imports

(USD/barrel)

2010 95 896 80,640

2020 110 1526 167,860

2030 120 2625 315,000

2040 130 4228 549,640

2050 140 6755 945,700

While the prices of most goods and services in India are market determined, administered pricing exists in certain sensitive sectors, including diesel. Diesel subsidies artificiallyreducethecostofthefuelbyaroundtwenty-one per cent, allowing it to be sold at a lower price primarily for the transportation of essential goods, public transport and agriculture. This is partly because an increase in transportation costs would directly lead to an increase in the prices of most food items, which would, in turn, hurt the vulnerable sections of the population.

Figure 3.5 Emissions of base transceiver stations

Note: Emissions calculated on the basis of BTS rollout as per Telecom Regulatory Authority of India (TRAI) projections.

24 NVVN is the designated nodal agency for entering into power purchase agreements with solar power developers to purchase solar power fed to 33 kV and above grids.

25 Telecom Regulatory Authority of India - http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/244/contdradiv3feb11.pdf

17 18

While the recommendations provide clarity in identifying critical issues, they clearly fall short in effectively addressing the issue of emissions from the telecom sector’s operations in India, or in setting targets that are ambitious but feasible. Moreover, there is no plan currently in place to institute such regulations. In the continued absence of any regulation, it is unlikely that manytelecomoperatorswilltakeanysignificantactiontowards the reduction of emissions of their network operations.

Information on the initiatives taken by the telecom sector in general to reduce their carbon emissions and shift to

renewably powered network towers is not also publicly available. Operators within the sector are particularly guilty of this.

Cost reduction is, however, beginning to emerge as a keyinfluence,drivingoperatorstoreducetheirenergyuse. Whilst regulation is certainly a driver for change, it is still at an embryonic stage in India. In the absence of a well-developed regulatory framework, issues relating to public disclosure of carbon emissions and the sourcing of renewable energy clearly lack transparency, given that a majority of the telecom operators abjectly fail to share this in a public and transparent manner on a consistent basis.

Fact File: Bharti Airtel

Assessment of top telecom brands’ positionon climate and energy

26Telecom Regulatory Authority of India – as on February 28th, 201127Refer to http://www.airtel.in/annual-report/annualreport.html28Refer to the Company’s Annual report http://www.airtel.in/annual-report/annualreport.html29Refer to https://www.cdproject.net/en-US/Pages/CDPAdvancedSearchResults.aspx?k=airtel30Refer to https://www.cdproject.net/en-US/Pages/CDPAdvancedSearchResults.aspx?k=airtel31Refer to http://www.bharti-infratel.com/cps-portal/web/gogreen.html32Refer to http://www.trai.gov.in/ConsultationPapers_content.asp

19 20

Company Bharti Airtel

Market Share 20.09%26

Position on mandatory GHG emissions

No visible support as per information available on website27. No reference specifictotheUNFCCCprocess.

Disclosure of carbon emissions (GHG emissions) through company’s operation

Company associated with The Carbon Disclosure Project (CDP). No reference in annual report28. As per the CDP, the company disclosed its figuresin2007Since2008,thecompanyhasnotrespondedtoCDPqueries on emission disclosure29.

Commitment to reduce GHG emissions from company’s own operations,onspecifictimelines

Nospecifictargets.However,referstoahostofinitiativesaspartofThinkGreen program towards reduction of carbon emissions, including green shelter and passive infrastructure sharing30.

Renewable energy used in company’s operations

Bharti Infratel (a wholly owned subsidiary) has committed to achieve a target ofsolarising2000mobiletowersby2010.However,specificinformationonprogress and achievements is not publicly available31.

Lobby / advocacy in favour of renewable energy

Nospecificinformationispubliclyavailable.Thecompanydidnotprovideitsresponse to TRAI’s green telecom consultation process32.

33Telecom Regulatory Authority of India – as on February 28th, 201134Refer to http://www.rcom.co.in/Rcom/personal/home/index.html35Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/Reliance_N.pdf36Refer to http://www.rcom.co.in/Rcom/personal/home/index.html37Refer to http://www.rcom.co.in/Rcom/personal/home/index.html38Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/Reliance_N.pdf39Refer to http://www.rcom.co.in/Rcom/personal/home/index.html40Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/Reliance_N.pdf41Refer to http://www.rcom.co.in/Rcom/personal/home/index.html42Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/Reliance_N.pdf

Fact File : Reliance Communication Fact File: Vodafone Essar

43Refer to Telecom Regulatory Authority of India – as on February 28th, 201144Refer to http://www.vodafone.com/content/dam/vodafone/about/sustainability/reports/vodafone_sustainability_report.pdf45Refer to http://www.vodafone.in/pages/index.aspx46Refer to http://www.vodafone.com/content/dam/vodafone/about/sustainability/reports/vodafone_sustainability_report.pdf47Refer to http://www.vodafone.in/pages/index.aspx48Refer to http://www.vodafone.com/content/dam/vodafone/about/sustainability/reports/vodafone_sustainability_report.pdf49Refer to http://www.vodafone.com/content/dam/vodafone/about/sustainability/reports/vodafone_sustainability_report.pdf50Refer to http://www.vodafone.com/content/dam/vodafone/about/sustainability/reports/vodafone_sustainability_report.pdf

21 22

Company Reliance Communication



NoreferencetospecifictoUNFCCCprocessandmandatoryemissionreductionsinpolicy34. However, in its submission to TRAI’s Green Telecom Consultation, company has supported the need for binding long-term targets for global emission reduction. Has highlighted the need for legally binding agreements to enable carbon credit policies to apply and work for the sector35.


No information available on website36. In its submission to TRAI’s Green Telecom Consultation, company has accepted the need for estimation of carbon emissions by the Indian telecom industry. Fails to provide any information on own energy consumption or emissions.


No information on website37. In its submission to TRAI’s Green Telecom Consultation, company has indicated support of the need to increase adoption of renewableenergy.However,ithasnotspecifiedatarget38.


No information on website39. In its submission to TRAI’s Green Telecom Consultation, company mentions various steps being taken towards utilising renewable sources of energy. However, it does provide any details or specify the steps undertaken or ongoing.Highlights and argues in favour of solar energy, for the operation of mobile towers, mentioning potential reductions in OPEX by 50-60%40.


No Information on website41. In its submission to TRAI, company supports the need fortheacceleratedandsignificantuseofrenewableenergyintheIndiantelecomindustry, while calling for government support on capital expenditure subsidy and waiver of customs and excise duties for installation42.

Company Vodafone - Essar



Globally, have highlighted the failure of the UNFCCC COP 15 summit at Copenhagen and committed to push for a legally binding agreement on emissions by engaging in various forums44. However, there is no information available on company’s Indian website45.


Company’s sustainability report discloses carbon emission for India as 2.28 million tons (excluding emissions from air travel), of which 2.2 tons originate from mobile towers46. This information is not available on the Indian website47.


The Vodafone Group has set a reduction target for carbon emissions of 50% by 2020, with 2006/07 as the base year. For emerging markets, including India, it proposes to establish emission intensity reduction targets48. However, there are as yet no emission reduction targets even on the basis of emission intensity reductions set for its operations in India.


The Vodafone group draws 23% of its global operational energy from renewable sources through various means of direct installation, renewable tariffs and grid-mix. No separate information on renewable energy use in India49 is provided.


The group is supportive of and lobbying for the deployment of low-carbon technologies and legally binding commitments for global emission reductions at variousinternationalforums.NospecificlobbyinitiativehasbeenmentionedintheIndian context50.

Fact File : BSNL Fact File: Tata Teleservices

51Telecom Regulatory Authority of India – as on February 28th, 201152Refer to http://www.bsnl.co.in/53Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/BSNL.pdf54Refer to http://www.bsnl.co.in/55Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/BSNL.pdf56Refer to http://www.bsnl.co.in/57Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/BSNL.pdf58Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/BSNL.pdf

59Telecom Regulatory Authority of India – as on February 28th, 201160Refer to http://www.tatateleservices.com/t-aboutus-corporate-sustainability.aspx61For FY 2010-11, the total carbon emission of TTSL from its mobile networks is 617,172 million tons. Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/TTSL.pdf62Refer to http://www.tatateleservices.com/t-aboutus-corporate-sustainability.aspx and http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/TTSL.pdf63Refer to http://www.tatateleservices.com/t-aboutus-corporate-sustainability.aspx64Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/TTSL.pdf 65Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/TTSL.pdf

23 24

Company Tata Teleservices Ltd (TTSL)



Aligns to the Tata Group’s position on climate change and advocates the need for global emission reduction60.


While there is no clear information available on the website, in its submission to the TRAI Green Telecom Consultation the company provides annual carbon emissionfiguresfromitsmobilenetwork61. However,thereisnoevidenceofthisfigurebeingexternallyverified.


Nospecificinformationrelatedtoemissionreductiontargets,eitheronwebsiteorincompany’s submission to TRAI’s Green Telecom Consultation62.


No information available on website63.As per its submission to TRAI’s Green Telecom Consultation, company has deployed 31 cell sites that are powered by solar power and fuel cells64. Plans to undertake multiple pilot projects on fuel cells based on LPG, hydrogen and hydrogen recombination technology, thus endeavouring to obtain clean power without the combustion of fossil fuels.


Company believes that direct emission reductions of Indian telecom companies can only happen if there is a direct tax incentive and capital subsidy provided by governmentfor installing capacity based on renewable energy.It asks TRAI to formulate carbon credit policy for the installation of renewable energyby telecom companies in India65.

Company Bharat Sanchar Nigam Limited (BSNL)



No information available on company’s position on mandatory reduction of emissions52.


No information about carbon emissions. available on website. In its submission to TRAI on the Green Telecom Consultation, company accepts that all telecom operators should account their energy and emissionfigures,yetmakesnospecificreferencetoitsownemissionsfrommobiletowers53.


No information available on website54. Company has not commented on this aspect in its submission to TRAI’s green consultation55.


No information available on website56. Supportive of the argument that that solar energy is the ideal renewable source for reducing emissions and to help reduce OPEX by 30% in mobile towers. However, failstoprovideanyspecificfigureontheuseofrenewableenergyinitsoperations57.


Company calls for an increasing number of telecom towers to be subsidised on solar energy under the Jawaharlal Nehru National Solar Mission58.

66Telecom Regulatory Authority of India – as on February 28th, 201167Refer to http://www.ideacellular.com/wps/wcm/connect/ce52db004464cb9c8775b76d9d64bafa/Annual_Report_2009_10_1.pdf?MOD=AJPERES&CACHEID=ce52db004464cb9c8775b76d9d64bafa68 http://www.ideacellular.com/wps/portal 69Refer to http://www.ideacellular.com/wps/wcm/connect/ce52db004464cb9c8775b76d9d64bafa/Annual_Report_2009_10_1.pdf?MOD=AJPERES&CACHEID=ce52db004464cb9c8775b76d9d64bafa70Refer to http://www.ideacellular.com/wps/wcm/connect/ce52db004464cb9c8775b76d9d64bafa/Annual_Report_2009_10_1.pdf?MOD=AJPERES&CACHEID=ce52db004464cb9c8775b76d9d64bafa71Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/Idea.pdf72Refer to http://www.trai.gov.in/WriteReadData/trai/upload/ConsultationPapers/248/Idea.pdf

Fact File : Idea Cellular Fact File: Aircel

73Telecom Regulatory Authority of India – as of February 28th, 201174Refer to http://www.aircel.com/AircelWar/appmanager/aircel/delhi?_nfpb=true&_pageLabel=books_Home_book75Refer to http://www.aircel.com/AircelWar/appmanager/aircel/delhi?_nfpb=true&_pageLabel=books_Home_book

25 26

Company Idea Cellular



No reference to climate change or emissions in annual report or on website67.


No disclosure of carbon emissions68.


As published in the annual report, the chairman’s speech refers to energy conservation through (i) solar-DG hybrid solutions; and (ii) hydrogen fuel cell solutions69.


While the reference to energy conservation and the utilisation of solar-DG hybrids in somemobiletowersismadeinthechairman’sspeech,therearenofurtherspecificdetails available70. In its submission to TRAIs green consultation, company takes the position that renewable energy has the potential to reduce OPEX by 20-30% in mobile towers71.


In its submission to TRAI green consultation, company has suggested a framework for carbon credit for Indian telecom industry in line with EU’s emission trading system.Ithasalsosuggestedfiscalincentiveandtaxexemptionforrenewableenergy generation and its installation in mobile towers72.

Company Aircel



No reference made and no information available on website or any public domain74.


No information available on website or any public domain75.


No information available on website or any public domain





Image: Mobile tower powered by solar photo-voltaic cells. This mobile tower is run by Vihaan Network Limited (VNL). Solar energy is economically feasible and technologically viable clean option for energy need of mobile tower.

Economic case for the shift to renewables

Two aspects assume critical importance for the sector:

•ManagingenergyCosts can be saved by powering network operations through renewable sources, combined with optimal energyefficiencymeasuresandstandards.

•ManagingcarbonThe sector’s continued reliance on diesel for its energy needs results in higher emissions, representing a serious liability in terms of carbon and climate change. The growth of the sector should not be at the cost of climate.

The non-availability of reliable grid power, especially in rural and semi-rural areas, adds to the already high costs of operations as telecom towers need to be powered by diesel generators. Diesel generators have been the choice of telecom operators despite their high carbon footprint, primarily because diesel is heavily subsidised and therefore low cost. If these subsidies were to be removed, the prices of power generation for the telecom sector could jump by 30-40%77.

The growth of the telecom sector continues at the cost of the climate. Simultaneously, this growth has also come at significantandgrowinglosstothestateexchequer,raisingfundamentalquestionsonitslong-termrobustnessandprofitability76.

Steps have been taken to reduce costs through sharing infrastructure, wherein a single installed telecom tower unit is shared by multiple telecom providers. However, the sector continues to depend heavily on diesel generators to power more than 350,000 towers across India, hardly considering renewable sources at any scaleofsignificance:lessthanthreepercentofnetworktowers are powered by renewable energy. The cost expenditure on energy ranges between thirty and thirty-fivepercentoftotalnetworkoperationscosts78.

Simultaneously, there are additional savings considering that there is no expenditure towards grid supply or diesel generators. For instance, a solar-based power solution on a three-tenant tower can reduce DG runs from 16 hours to less than 4 hours per day, reducing energy OPEX to INR 10,000 per month. As a DG-dependent tower can have energy OPEX of INR 40,000 per month, this is a monthly saving of INR 30,000, which ploughs back in to offset the higher CAPEX.

As OPEX play a vital role in determining the sustainability andprofitabilityofatelecomnetworksite,beitBTS,repeaters, or boosters, the business case for renewable energy is highly compelling.

Telecom operators or service providers are better placed powering their network towers through renewable energy,despitesignificantcapitalexpenditures.Forwhile the initial CAPEX is higher as a result of research and development investments, manufacturing control, supply chain control and management, this can be offsetbysignificantlylowerOPEX,furthersupportedbygovernment subsidies.

Power is being generated from renewable energy sources such as wind, biomass, small hydro and solar energy in both grid-interactive and off-grid modes to meet electricity requirements in locations across the country. Further, decentralised renewable power projects using wind energy, biomass energy, hydro power, and wind-solar hybrid systems are being established to meet energy requirements of areas that are not likely to be electrifiedinthenearfuture.

Chapter 04

Figure 4.1Diesel consumption and costs - forecasting

Note: consumption and costs are calculated based on BTS projections by the Telecom Regulatory Authority of India and assumptions are made on a minimum of 60% power generated through DG sets in rural areas. Cost calculations account for pilferage and DG phase-out costs.

Note: the comparative analysis is between a DG-based tower for which at least 60% of power is generated through DG sets. The subsidy provided to solar (INR 100 per Watt) is not factored into the analysis.

76In addition to the high operational expenses for the sector, this also results in a loss of around INR 26 billion to the exchequer, considering the indirect subsidiesthesectorbenefitsfrom,inrelationtodiesel.77WCS Opinions - The Green Telecom Story

78Debashis Ghosh, Audit Department, Indus Towers

Figure 4.2Comparative analysis of total costs (CAPEX + OPEX): DG-based BTS vs SPV BTS

29 30

6.27

5.7

7.73

6.87

2012 (Forecast)2011 (Forecast)

18

17

27.6330.1

32.65

35.16

5.02 3.7 3.08

2.58

5.5 2.943.56

3.29 2.8542.71 2.23 2.09 2.09

40

35

30

25

20

15

10

5

0

2011 2020 2030 2040 2050

Diesel

Solar PV

Wind

Biomass Combined and Heat power

Renewable energy sources are among the most cost-effective in widening the reach of telecommunications in remote areas.Byshiftingtorenewablepowersourcesandenergyefficienttechnologies,telecomoperatorscouldearntwicethepower savings in the form of carbon credits79. The average carbon emissions from a telecom tower in India are around 40,000tonnesandsooperatorsinIndiacanpotentiallyreducecarbonemissionsbyuptofivemilliontonnesannually,which under a fair and effective carbon credits scheme would translate into cost savings of up to USD 1.5 billion for the operators annually80.

Figure 4.3Cost of generation per unit of electricity

Note: diesel costs account for pilferage and DG phase-outs. Diesel costs projections on the basis of report of The Expert Group on A Viable and Sustainable System of Pricing of Petroleum Products February 2, 2010 http://petroleum.nic.in/reportprice.pdf

Renewable costs projections on the basis of Greenpeace’s Energy [R]evolution scenario www.energyblueprint.info

Case Study 01: Huawei81

Huawei solutions demonstrate that resource conservation at base stations can be realised through the continuous improvementofefficiencystandards,whileimprovingtheirtotalcostofownership(TCO)throughtheuseoflow-powerBTS based on a green design.

The solution has been adopted in a remote location in South Africa that has no grid connectivity. Normally, operators in such a scenario would use two DG sets to feed the BTS site, allowing it to run continuously for twenty-four hours. The implementation of this hybrid solution accrues savings of up to USD 19,000 annually on OPEX. This has been achieved by upgrading the site to have the following features:

• Huawei 3900E BTS• PV modules – 1320W

Fuelsavingsthatcanbeachievedthroughcombiningrenewableenergywithimprovedenergyefficiency:

• Diesel fuel saving of USD 8672 per tower per year• Diesel refueling fee of USD 2200 per year• Routine DG maintenance saving of USD 8100 per year

79http://voicendata.ciol.com/content/top_stories/211040801.asp80http://voicendata.ciol.com/content/top_stories/211040801.asp 81Information as provided by Huawei

31 32

Image: A solar PV module.

Cost distribution and optimisation of site energy

• Battery – 400AH• Removal of one DG set

VNL’sWorldGSMTMisthefirstmobilenetworkdesignedtoserveruralpopulationsindevelopingmarkets-anddoitprofitably.Avillagesitetypicallyhasaninemetrepolewithanomniordirectionalantennaontop,solarpanels,batteriesand the WorldGSM VBTS – a complete two TRX BTS including backhaul. Unlike traditional GSM base stations, the village site needs no shelter, air conditioning, grid power, generator or diesel fuel.

Designed to deliver maximum coverage in rural networks, features of the GSM base station include being entirely solar powered, having no requirements for shelter, grid connectivity or DG sets, and having no requirements for air conditioning. The base station is ideal for simple transport and can be operational in a few hours.

Besides the extension of existing GSM networks to rural areas, the solar-powered GSM base station has a near-zero OPEXandadramaticallylowerCAPEX,makingtelecomservicesprofitableevenatverylowARPUlevels.Itsignificantlydecreases costs by replacing grid power and diesel generators with solar energy. Equipped with a battery autonomy of up toseventy-twohours,italsoprovidesforflexibledeploymentconfigurations.

Case Study 02: VNL’s solar-powered GSM82

Solar power 1 TRX 2 TRX 2/2/2 TRX

Panels (each 1m x 2m) 2 3 8

Sun free days 3

Power consumption(including backhaul)

1 TRX 2 TRX 2/2/2 TRX

Maximum (Watts) 55 90 230

Average (Watts) 55 70 200

Backhaul system 1 TRX 2 TRX 2/2/2 TRX

5.8GHz Integrated transmission External Unit

Complete system1 TRX 2 TRX 2/2/2 TRX

Footprints (metres) 2 x 2 2 x 3 2 x 8

Shelter required No

Gen. set required No

Grid power required No

Tower / pole 1 TRX 2 TRX 2/2/2 TRX

Height (metres) 9 9 Up to 18

Type Pole mounted (integrated with solar panels and battery stand)

Self-supporting monopole

Wind load (km/hour)170

170

Lighting arrestor Yes

The key elements in its rollout are the rural site solution (RBTS backhaul and power), village site solution (VBTS backhaul and power), BSC and MSC.

The savings observed at sites where solar and energy management systems (EMS) have been integrated are phenomenal,exceedingtwentytotwenty-fivepercentofthetotalenergycostsforallsites.Thesolutionshelpinthereduction of costs by reducing energy requirement, utilising existing energy sources optimally, and utilising renewable sources to reduce excessive dependence on non-renewable sources, in particular diesel.

Case Study 03: Global Towers Limited83

Pre-installation of EMS

products

Post-installation

of EMS products

Savings

INR / month INR / month INR / month INR / year %

Diesel Costs 45,681.00 3,600.00 42,081.00 504,972.00 92.00

Electricity board costs 5,746.00 9,152.00 -3,407.00 -40,884.00 -59.00

Total energy cost 51,427.00 12,752.00 38,675.00 464,100.00 75.00

82 Information as provided by VNL 83Information as provided by GTL

Site details – Aharan, District Agra, Telecom Circle – Uttar Pradesh (West) Commercial savings

Energy cost comparison – pre and post installation

33 34

Of the wide range of possible opportunities for wireless telecoms to reduce carbon emissions and energy costs, some of the key areas where these exist include

•Dematerialisation – replacing physical goods, processes or travel with ‘virtual’ alternatives, such as video conferencing or e-commerce, mobile tele-presence, virtual offices.

•Smart grids –improvingefficiencyofelectricitygridsthrough active monitoring and reducing reliance on centralised electricity production through energy network monitoring wherein wireless devices monitor losses and load capacity of the transmission and distribution network,, smart metering which support the sale of energy generated locally to utility companies for distribution locally and grid load optimisation.

•Smart logistics – monitoring and tracking vehicles and theirloadstoimprovetheefficiencyoflogisticsoperationsby utilising vehicles more fully including centralized tracking through wireless vehicle tracking devices, decentralized tracking through onboard tracking devices which communicate wirelessly with nearby vehicles to adjust speed and routes (for example in freight companies), onboard telematics where data from vehicle sensors are used to plan predictive maintenance and encourage fuel-efficientdrivingandremotesupplycontrolwheredevicesmonitoring stock levels in vending machines as an example canbelinkedwirelesslytosuppliersformoreefficientdeliveries.

• Smart cities –improvingtrafficandutilitiesmanagementthrough urban monitoring and control systems that network trafficlights,andtheremotemonitoringofutilities.

The Information and Communication technology (ICT) sector can lead the drive to a sustainable and green economy and play a transformative role in on how we produce, deliver and use energy. ICT based solutions can contribute towards the reduction of global GHG emissions by 15% by 2020, and in the process also deliver energy savings to the tune of over €600 billion to global business.

Telecommunicationscanmakeasignificantcontributiontothisdauntingchallenge.Wirelesstelecomsenableremotemonitoring through machine-to- machine (M2M) ‘smart services’ using cellular connections. Increasingly, many industry sectors are integrating M2M smart services in monitoring and control systems. As many as a trillion networked devices could be in use by 202084.

• Telemedicine: Telemedicine is an innovative model of synergizing communication and information technology with medical sciences to deliver health care services to remote and, distant regions across India. These models connect patients with medical providers conveniently and efficiently.Itcombineshigh-definitionvideo,advancedaudio and network-transmitted medical data. Some existing examples are Cisco’s Health Presence and ISRO’s Telemedicine project.

• Mobile banking: While this is widely prevalent in India, it does not provide customers with options for money transfers (withdrawal and deposits). An upgradation of this kind would serve customers well, especially in rural areas, where people can withdraw or deposit money, repay or seek loan along with availing other banking facilities similar to physical bank. A mobile banking application ‘M-Pesa’ provided by Vodafone and Safaricom, in Kenya, continues to serve a large number of widely spread customers, effectivelyandefficiently.

•Mobile Education:Mobilephonescanplayasignificantrole in the domain of education in India. Major players in the industry are now developing the necessary applications to work towards mobile education like m-education or m-learning. However, its real potential is providing real-time education in rural areas. Combining Video conferencing technologies and education platforms, a virtual school system can be created through which children in rural far-flungareascanaccessqualityeducation.

Telecom – A business opportunity and solution for climate change and beyond

84David Clark (Senior Research Scientist, MIT) quoted in The Economist, Telecoms – A world of connections, 2007

35 36

Image: Low power roof top mini mobile tower powered by solar energy. This tower called as World GSM, world’s smallest mobile tower, is developed by Vihaan Network Limited (VNL).

Image: A mobile tower.

Towards Sustainable Telecommunication

Powerdeficits,coupledwiththerisingcostofdiesel,poseasignificantchallengeforthesector.Whilethecurrent model of diesel-powered networks offers the sector short-term capital gains, such a model of operationislikelytolimitgrowthandprofitgenerationprospects of the sector in the long term. Continued reliance on diesel will also substantially increase the energy costs of telecommunication companies, besides the added environmental costs in the form of carbon emissions. A switch to renewable energy sources adds economicrobustnessandlong-termprofitabilityfortelecom companies.

Programmes such as the Jawaharlal Nehru National Solar Mission, under which the government is planning to support renewable-based electricity for off-grid network towers, are a small step in the right direction. Fundamentally, however, the government should incentivise telecom companies towards initiatives in whichtheysignificantlyshifttheirbusinessandoperationmodel from one based on diesel, to one based on renewable sources of energy.

Simultaneously, it is imperative that the government expedites this process by establishing stringent regulatory frameworks that hold the telecom industry accountabletocarbonemissiontargetsandefficiencystandards.

This report highlights the immense cost and energy savings that companies and the sector on the whole couldbenefitfrom,byenablingashifttowardsrenewablesources to power their network operations.

Inthefightagainstclimatechange,thetelecomsectorinIndia holds one of the keys to reaching our climate goals. It is clear that as the energy demand of the telecom sector grows, the supply of renewable energy must also keep pace. Additionally, the sector as a whole should be advocating for strong policies that result in economy-wide emissions reductions.

With its immense contribution to India’s growth over the last two decades, the telecommunication sector is well placed to move to a business model that relies on energy efficiencymeasuresincombinationwithresourcingits energy needs primarily and predominantly through renewable sources.

Against this background, Greenpeace is demanding that the telecom industry in India should:

• Publicly disclose their carbon emissions and set progressive emission reduction targets.

• Commit to shifting the sourcing of their energy requirementssignificantlytowardsrenewablesources.

• Make clear investment plans for the co-development of renewable energy based generating capacity sources along with development of new telecom infrastructure.

• Enablealow-carboneconomybyplayingasignificantrole in advocating strong climate and energy policy changes in favour of renewable energy sources and technologies at national and international levels.

Fortelecomoperators,thebenefitsofamoreproactiveapproachtocarbonandenergy-orientedmanagementwillbesignificant.Revenuegenerationopportunitiesaretheretobecapitalisedbythefirstmoversinanextremelycompetitivemarket space. Unfortunately, telecom companies are yet to integrate low energy and low carbon considerations across their operations and portfolio.

Chapter 05

39 40

Image: A mobile tower powered by grid with back-up from diesel generator.

Annexures

Total Wireless Wireline

Subscribers 723.38 Million 687,71 Million 35.57 Million


Growth % from previous quarter

7.68% 8.21% -1.70%


Urban Subscribers 487.07 Million (67.34%)

460.63 Million (66.98%)

26.44 Million (74.34%)


Rural Subscribers 236.21 Million (32.66%)

227.08 Million (33.02%)

9.13 Million (25.66 %)


Teledensity 60.99 57.99 3.01


Urban Teledensity 137.25 129.81 7.45


Rural Teledensity 28.42 27.31 1.11

Annexure 1 Telecom growth Snapshot

Annexure 2Telecom subscribers and teledensity by state

State Subscribers (Millions) Teledensity (%)

Jammu & Kashmir 4.68 42

Punjab 85.57 69.82

Haryana 16.6 68.66

Himachal Pradesh 5.86 91.81

Rajasthan 36.92 57.03

Gujarat 37.64 67.02

Uttar Pradesh 87.83 42.23

Madhya Pradesh 36.35 39.54

Bihar 43.29 34.82

West Bengal 30.21 41.28

Assam 10.03 34.01

North East 6.01 48.14

Orissa 18.13 46.11

Maharashtra 49.54 56.41

Karnataka 42.52 76.57

Kerala 27.21 88.54

Tamilnadu 49.01 85.2

Andhra Pradesh 51.62 64.04

41 42

Source: Telecom Regulatory Authority of India – as of February 28th, 2011

Source: Indian Telecom Services Performance Indicator Report: Telecom Regulatory Authority of India

Service Provider Market Share

Bharti 20.09%

Stel 0.34%

Loop 0.39%

Eti salat 0.08%

Vodafone 16.54%

HFCL 0.18%

Videcon 0.83%

Uninor 2.73%

Aircel 6.76%

Tata 11.08%

Idea 10.97%

Reliance 16.70%

BSNL 11.41%

MTNL 0.69%

Sistema 1.21%

Quarter Ending Subscriber Base (Millions)

Teledensity

September 2009 509.03 43.50

December 2009 562.16 47.88

March 2010 621.28 52.74

June 2010 671.69 56.83

September 2010 723.28 60.99

2009 2014

Enterprise Networking and Communications

2% 3%

Mobile Services 45% 45%

Fixed Services 36% 31%

Mobile Devices 11% 15%

TOMS 2% 2%

Carrier Network Infrastructure

4% 4%

Company Share

Reliance Infratel 17%

Indus Towers 32%

Essar Telecom Infrastructure 2%

WTTIL + Quippo 7%

Bharti Infratel 10%

GTL Infrastructure 4%

Others 29%

Year Subsidies (INR Crores)

2002 to 2003 300.00

2003 to 2004 200.00

2004 to 2005 1,314.59

2005 to 2006 1,766.85

2006 to 2007 1,500.00

2007 to 2008 1,290.00

2008 to 2009 1600.00

2009 to 2010 2,400.00

43

Source: Telecom Regulatory Authority of India – as on February 28th, 2011

Annexure 3 Market share of service providers

Source: Telecom Regulatory Authority of India – as on February 28th, 2011

Annexure 4Teledensity quarter endings

Source: Indian Telecom Services Performance Indicator Report - Telecom Regulatory Authority of India

Annexure 5Market revenue by sector

Annexure 6Distribution of tower infrastructure

Annexure 7Total disbursement of USO subsidies

Source: Universal Service Obligation (USO) Fund, Department of Telecom, Ministry of Information and Technology,Government of

India. http://usof.gov.in/usof-cms/home.jsp

Image: Mobile tower powered by solar photo-voltaic cells. The mobile tower is run by Vihaan Network Limited (VNL). Solar energy is economically feasible and technologically viable clean option for energy need of mobile tower.

Greenpeace is a global organisation that uses non-violent direct action to tackle the most crucialthreatstoourplanet’sbiodiversityandenvironment.Greenpeaceisanon-profitorganisation,presentin40countriesacrossEurope,TheAmericas,AsiaandthePacific.It speaks for 2.8 million supporters worldwide, and inspires many millions more to take action every day. To maintain its independence, Greenpeace does not accept donations from governments or corporations but relies on contributions from individual supporters and foundation grants.

Greenpeace has been campaigning against environmental degradation since 1971 when a smallboat of volunteers and journalists sailed into Amchitka, an area north of Alaska, where the USGovernment was conducting underground nuclear tests.This tradition of ‘bearing witness’ in a nonviolent manner continues today, and ships are an important part of all its campaign work.

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